Mr. Steve Magirias reports

DRONE DELIVERY CANADA CORP. RELEASES 2023 FINANCIAL RESULTS AND PROVIDES GENERAL CORPORATE UPDATE

Drone Delivery Canada Corp. has released its 2023 financial results, and has provided a general corporate update.

The company is pleased to report that in 2023 it achieved its highest revenue to date, earning revenue of $1,239,356, which represents an increase of 50 per cent in year-over-year growth. This was driven primarily by revenue from the contract with the government of Canada related to testing of the Condor, which concluded in December, 2023, and completion of the first milestone of the Canary testing contract with the Department of National Defence (DND). In addition, the company reduced its net loss in 2023 by $3,450,067 or 26 per cent from $13,414,231 to $9,964,164, largely due to a reduction in operating expenditures driven by personnel, and research and development expenditures. As such, the company was able to reduce its cash used in operating activities from $11,943,111 to $7,676,569.

The fourth quarter of 2023 was focused on servicing the DND contract and the implementation of the new DroneCare route, which became operational subsequent to Dec. 31, 2023.

DDC is also pleased to provide general corporate updates on its activities.

Canary development

During the year ended Dec. 31, 2023, the company completed the development of the Canary and deployed it to operate as part of the DND contract. As part of its continuous improvement plan, the company concurrently began integrating a new autopilot which will enable plug and play capabilities with other integrated technologies such as C2 link and GPS systems and is expected to result in improved flight performance.

Detect and avoid technology

The company is also working toward the further development of detect-and-avoid (DAA) systems, which are intended to facilitate beyond visual line of sight operations, which has the potential to significantly reduce operational costs, and provide a robust solution to meet the demands of the company's prospective customers. The company previously announced the deployment of a ground-based DAA system acquired from Canadian UAVs Inc. at the location of its strategic partner DSV Air & Sea Inc. Canada in Milton, Ont., which is intended to support the Sparrow and Canary drones.

During the year ended Dec. 31, 2023, the company was able to complete the radar performance assessment, following a repositioning of the system as the system performance was suboptimal in its original selected position and has improved the detection rate for the new DroneCare route. In December of 2023, DDC received SFOC approval for VO BLVOS on its DroneCare route, allowing the removal of several visual observers from the operation. Subsequent to Dec. 31, 2023, the company submitted an SFOC for a complete BVLOS waiver for the current DroneCare route. This BVLOS waiver would permit the removal of all visual observers from the DroneCare route.

In addition, subsequent to Dec. 31, 2023, the company has begun evaluating an onboard DAA system for the Canary and is also concurrently evaluating a second ground-based DAA system. The company intends on evaluating all three systems and the implications of integrating such technologies into the company's proprietary FLYTE software.

"The DDC team has been focused on executing a key set of objectives to realize the full potential of our complete logistics solution. This includes the drones, required infrastructure, DAA systems as well as our FLYTE software which ties it all together. We have made solid progress to position us for projects at scale when the regulatory environment enables this," said Steve Magirias, chief executive officer of Drone Delivery.

About Drone Delivery Canada Corp.

Drone Delivery Canada is an award-winning drone technology company focused on the design, development and implementation of its proprietary logistics software platform, using drones. The company's platform is intended to be used as a software-as-a-service (SaaS) model for government and corporate organizations globally.

Drone Delivery Canada is a publicly listed company trading on the TSX Venture Exchange under the symbol FLT, on the U.S. OTC QX market under the symbol TAKOF and on the Frankfurt exchange in Germany under the symbol A2AMGZ or ABB.F.

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